X hits on this document

PDF document

Questionnaire for CDS CCPs on Protection of Customer Initial Margin - page 6 / 32

77 views

0 shares

0 downloads

0 comments

6 / 32

LCH.C only deals with CMs as principal and is not party to CM/customer arrangements.

Nature of Relationship Between CCP, CMs, Custodians and Customers

2. Please describe the nature of the legal and contractual relationship between the CCP, the CMs, custodians, the customers and any other relevant parties, specifically addressing the following:

A copy of the Clearing Member Agreement relevant to this market is supplied.

LCH.C only deals with CMs as principal and is not party to CM/customer arrangements.

a. Are CMs acting as agents or principals (or operating with aspects of both) vis-à-vis (i) the CCP and (ii) customers? Please elaborate.

LCH.C deals with CMs as principal and is not party to CM/customer arrangements.

b. If customers are permitted to clear transactions through non-CM affiliates of the CM, who in turn clear through the affiliated CM, please describe in detail the mechanics of such an arrangement.

Description of Proposed Clearing Structure4

  • 3.

    Please detail the manner in which customers will post CCP Margin.

    • a.

      Will the CCP Margin be posted pursuant to pledge or title transfer arrangements?

Cash is transferred outright to the CCP.

Securities are subject to a charge in favour of the CCP.

4 Please address the relevant questions with respect to each proposed clearing structure. For instance, if the CCP has one clearing structure for transactions entered into directly between a customer and its CM / prime broker, and another for transactions originally entered into between a customer and an executing broker that are subsequently given up to the customer’s CM / prime broker, please respond to the questions with respect to each proposed clearing structure.

6

Document info
Document views77
Page views77
Page last viewedWed Dec 07 12:34:45 UTC 2016
Pages32
Paragraphs476
Words8853

Comments